Analysis Of Trompenaars Theory Of Culture

Superior Essays
As mentioned before, international businesses are exposed to different cultures and often times need to adapt their practices to fare best in that particular culture. For the purposes of this report the operations of the New Zealand multinational dairy company Fonterra will be analyzed in two countries, China and Malaysia. The analysis will relate the differences in Fonterra’s operations in those countries back to Trompenaars’ theory of culture.
First follows a brief background of Fonterra. Fonterra is the world’s leading exporter of dairy products, exporting to over 140 countries and accounting for roughly 30% of the world’s dairy exports (Rabobank, 2015). Fonterra is a co-operative, owned by around 10,500 New Zealand farmers. In total Fonterra
…show more content…
Both China and Malaysia are characterized by a particularistic culture. Relationships are more important than rules in these cultures, and inequality between groups is more obvious. Also, China and Malaysia both accord more importance to the collective than to individuals; common goals are more important in these societies. With respect to the third dimension of Trompenaars’ theory, Chinese people tend to be more neutral in showing their emotions than Malaysians, who are more affective. That is, Malaysian people tend to show their emotions more openly. Furthermore, China has a comparatively more diffuse culture than Malaysia. So in China the process is more important and the degree of involvement in others in dimensions of personal life is greater than in Malaysia. And lastly, both in Chinese and in Malaysian culture status is accorded to people based on their personal characteristics, such as their position or …show more content…
Due to growing demand from Chinese customers for fresh milk, Fonterra built its first farming hub in China in 2007. Now they have another farming hub in China, and more on the way (Fonterra, n.d.). Moreover, Fonterra announced in 2014 that it would start a joint-venture with Beingmate, a Chinese infant food manufacturer. This would help Fonterra have an integrated business in China, thereby strengthening their place in the local market through local commitment. Products of Fonterra that have a strong market presence in China are high value nutritional powders for bone health and mother and child nutrition (New Zealand China Trade Association, n.d.). Especially the infant formula is important to Fonterra, the formula being the fastest growing dairy category in the world. Besides, due to scandals in the past, the promise of safe and high quality dairy products is highly important to the Chinese government and the local people (“Moving on from Milk Scandal”,

Related Documents

  • Decent Essays

    A business must, therefore, take into consideration the cultures of the employees and the influence of the cultures on the business. In the case study, Shonteur Inc. experiences several culture-related problems that affect the business operations of the subsidiary in France. The employees working in the Shonteur Inc. France branch have different cultural backgrounds, and this affects the business.…

    • 306 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    Understanding Culture & Values Culture is defined as a set of values, norms, guiding beliefs, and understandings shared by organization members with new members as an accurate manner of thinking, feeling, and behaving (Daft, 2016). Though challenging, it is possible for an outsider to discern the cultural values of an organization, accurately, through the analysis of artifacts, such as symbols, ceremonies, dress, etc. The authors Martinez, Beaulieu, Gibbons, Pronovost, and Wang stated, “Culture is trickier to define, as well as to analyze” (2015, p. 331). However, the analysis of artifacts is possible, but difficult to decipher in an accurate manner because the individual does not have all of the relevant information for the…

    • 1516 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Natureview Farm, an organic yogurt manufacturer from Cabot, Vermot found itself in a difficult situation because the venture capital that funds its strategic investments needed to cash of its investment in the company, and in order to attract another investor or position itself for acquisition, the company wanted to increase their revenues by 50% by the end of the next year (2001). In order to achieve this increase in revenue, the small natural yogurts company would need to grow their sales from $13 million to $20 million by the end of next year. Natureview yogurt was founded in 1989, and its key value was flavor and texture developed from a family recipe created by the company’s founder. It was made of milk from cows untreated with artificial…

    • 964 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Clover Case Study Answers

    • 2182 Words
    • 9 Pages

    Question 2: Introduction: Local competition can be described as existence of local firms that sell the same services or goods to customers on a competitive level to gain customers and make a profit. International competition can be described as the existence for global companies that serve customers over the whole world with the aim to satisfy customer needs and maximize profit. International competition has been increased by shipping channels, reducing of barriers and centralized financial authorities.…

    • 2182 Words
    • 9 Pages
    Great Essays
  • Superior Essays

    Case Study Monforte Dairy

    • 1653 Words
    • 7 Pages

    With such high levels of art and quality required to successfully produce cheese with a low existing competition in Ontario, this could be a strong option for Klahsen. Moreover, since the byproduct (whey) could externally be sold and help the company generate more profits and be a lucrative investment. Moreover, the idea of CSR for Klahsen of donating Monforte’s whey to local pig farmers, she would also be able to increase the firm’s brand loyalty over time. With regards to the financials, Klahsen would have to take into account the projected start-up costs for this option as well as the projected NPV of ~67000. Lastly, the other relevant factor that Klahsen would need to consider while making a decision is her supply chain that is not explicitly mentioned in the case.…

    • 1653 Words
    • 7 Pages
    Superior Essays
  • Decent Essays

    Whole Foods Market

    • 398 Words
    • 2 Pages

    1. Broad Variety of Products – An extensive product offering allows the company to address multiple customer segments. Besides insulating Whole Foods Market from any significant fall in demand for a specific product or segment, extensive product portfolio also enables the company to attract new customers in addition to retaining the existing ones. 2. Respectable Brand Image –…

    • 398 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Cheap Foods, Real Costs. What better way to enjoy your regular, morning rituals of diving in to a bowl full of bright, candy-colored bites of your favorite and most popular cereals being advertised today? For years, the extensive marketing efforts of food companies have reached all-time highs, especially when it involves children. “Trix” cereal is one of America’s most hearty cereals, because not only does it taste great, but the appearance of the actual box of cereal just looks promising.…

    • 1461 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    1) What is the relevant market? To determine the boundaries the relevant market, the ACCC and Australian Courts apply the SSNIP test which determines the smallest product and geographical dimension over which a hypothetical monopolist could initiate ‘a small but significant and non-transitory increase in the price of its goods’ (ACCC v Metcash Trading). Prima facie, the product dimension of the market in this scenario consisted of the amino acid lysine, which is commonly added as a nutritional supplement in poultry and swine feed. From the perspective of feed manufacturers, there is no viable substitute for factory synthesised Lysine.…

    • 2112 Words
    • 9 Pages
    Great Essays
  • Great Essays

    Abstract: Culture is the way in which people look at situations and solve their problems as cited in Trompenaars & Hampden-Turner, 1998. It’s a mix of the ideas, customs, social behaviour, beliefs and practices of a particular people of society. It impacts the way we view, organize, and conduct business and life. Cross-cultural differences directly influence the degree of success for any international business thus impacting areas like human resources, business alliances, foreign direct investment, finance and accounting. (Kevin D. Lo, Amanda Budde-Sung, 2013) We examine Australia and India as examples of the national model and explain cultural differences between the two countries based on Hofstede’s dimensions and the impact on motivation,…

    • 2218 Words
    • 9 Pages
    Great Essays
  • Superior Essays

    Organizational diagnosis is a process in which information is collected to understand the current functioning of an organization (Cumming & Worley, 2014, pg. 786). Organizational diagnosis is needed when someone within an organization hires an OD practitioner or consultant to evaluate and address an issue of concern within an organization. These workplace issues could range from employee engagement, job satisfaction, performance management, diversity and inclusion, etc. To effectively conduct a diagnosis, a vital part of the process is collecting data. Data collection allows researchers to evaluate multiple types of data while they try to understand the problems of an organization and to lay the foundation for solving these problems.…

    • 1621 Words
    • 7 Pages
    Superior Essays
  • Superior Essays

    Organizational culture is one of the most fascinating and exclusive topics for management researchers. It has been defined as a programming of mind, which distinguishes the member of one organization from one another (Hofstede, 1991) or a system of shared values and believes within an organization, which guides the behaviour of the employee (from French et al. 2008). Deal & Kennedy’s (1982) phrase ‘the way we do things round here’ a definition that might more properly describe ‘culture’, but more fully defined by Hofstede (1991, p.262) as ‘the collective programming of the mind which distinguishes the members of one organization from another’. Culture cannot be precisely seen, but can sensed and felt. Culture provides guidance to behaviors…

    • 2199 Words
    • 9 Pages
    Superior Essays
  • Improved Essays

    Sainsbury Case Study

    • 1322 Words
    • 6 Pages

    1.0 Introduction Cultural differences influence an organisation’s ability to penetrate a foreign market. As Ahistrom and Bruton (2009) note comprehending culture is vital to understanding the differences in business globally (p. 36). Various cultures have different management, communication, and negotiation styles that are influenced by societal values and norms. Therefore, companies that penetrate a new market have culture to contemplate besides a country’s legal structure, economic position, and competitors. Consequently, some multinational companies will employ different strategies such as diversification, product development, franchise, or mergers in order to penetrate foreign markets with distinct cultures.…

    • 1322 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    INTRODUCTION One of the major challenges Japanese firms encounter when expanding overseas is in managing the culture of their overseas subsidiaries. The organizational structure and culture of the subsidiary plays a crucial role in the successful implementation of various management practices (Kull and Wacker, 2010). The organizational culture is partly reflected in the way in which a company manages its human resources (Schneider, 1988) and this could potentially lead to either positive or negative operational effects of the firm depending on factors such as the culture of the environment in which it operates. A vast amount of literature attempts to define Japanese organizational culture in large corporations and how it is beneficial for…

    • 2028 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Pestel Analysis Of Ornua

    • 924 Words
    • 4 Pages

    Ornua is an agri- food commercial co-operative which markets and sells dairy products. It employs up to 3000 people globally and exports to 100 countries. It has annualized sales of over 2 milion. Owners of brands such as kerrygold, Pilgrims choice, Dubliners Cheese etc. its main purpose is to create sustainable routes to market for high quality Irish dairy goods (Ornua 2015).…

    • 924 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Culture in the international marketing has an important position. International marketing success and failure, the main reason is cultural (Ricks, 1993 cited in Hollenson, 2017). A large number of cases show that in many environmental factors, the culture is gradually becoming a core factor affecting international marketing. The main purpose of this essay is to illustrate the importance of culture in international business through some basic theories and related cases. The essay will be divided into two parts.…

    • 1625 Words
    • 7 Pages
    Improved Essays

Related Topics